Ministers concluded that the preferred bidder’s proposal did not provide sufficient long-term stability, certainty or value for taxpayers. The decision followed due diligence and extensive discussions after the bidder was selected earlier this year.
SSUK operates sites in Rotherham, Stocksbridge, Brinsworth and Wednesbury. Their output has included aircraft landing gear, helicopter rotors, missiles, munitions and artillery casings.
The facilities also have electric arc furnace technology and specialist steelmaking capabilities serving the automotive, aerospace and defence sectors. The government said those capabilities may support growth industries identified in its modern Industrial Strategy.
SSUK entered liquidation in August last year after prolonged financial difficulties under its previous ownership. Its position had deteriorated following the collapse of primary lender Greensill Capital in 2021.
The government has since funded the independent, court-appointed Official Receiver to manage the liquidation. That support has covered staff wages and measures required to maintain safety across the sites.
Public acquisition would provide additional time to assess SSUK’s long-term future as a speciality steel producer. Ministers will also consider advanced manufacturing, regeneration opportunities and future private investment.
“We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default,” Business Secretary Jonathan Reynolds said.
Reynolds said the government would work with employees, local leaders, industry and investors before deciding the sites’ future. “I am determined that we take the time to properly assess the opportunities available here and make decisions that support growth, jobs and Britain’s industrial future.”
“This Government refuses to be a passive observer to the decline of our critical industries and the loss of good jobs. Inaction is not an option,” First Secretary of State Louise Haigh said.
South Yorkshire Mayor Oliver Coppard said the announcement gave stakeholders more time to find a sustainable outcome. “I’m pleased the Government has taken action. It’s the next important step forward, giving us more time to find the best possible outcome for our steel making communities – places where people have faced economic challenges and real barriers to opportunity for far too long.”
The Department for Business, Innovation, Science and Trade will work with the Official Receiver, the South Yorkshire Mayoral Combined Authority and local communities over the coming months. Any acquisition or subsequent spending will remain subject to due diligence and must be financed from existing government budgets.
Separately, the Serious Fraud Office is investigating suspected fraud, fraudulent trading and money laundering involving companies within the Gupta Family Group Alliance. The inquiry includes financing arrangements linked to Greensill Capital.
